Overdrafts: Ledger Balance vs. Available Balance

When it comes to overdrafts, do you use the ledger balance or do you use the available balance? Do you clearly communicate to your customers which balance you use? In the last several years, we’ve seen banks get into UDAAP trouble for these issues. There’s nothing that requires you to use a specific balance method but you do need to be aware of the potential risks associated with them. You also want to make sure that your disclosures and account agreements are clear on the issue to ensure they can make informed decisions.

Jerod explains more in the video.

Ready to learn more? JOIN US for our webinar, “What You Need to Know About Overdrafts”. Featured topics include:

• Hot Spots, The Latest Guidance, Best Practices & Expectations
• Available vs. Ledger Balances, Debit Card Holds & Multiple Fee Issues
• Approved Positive Transactions that Settle Negative
• Customer Communications & System Oversight
• Regulatory Exam Feedback
• Management & Frontline Oversight
• UDAAP Angles
• Your Questions & Much More!

Published
2022/06/30